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Drop in rec property costs ‘dramatic’

The escalating price of waterfront property at Sylvan Lake has undergone an abrupt reversal, according to Re/Max’s 2011 Recreational Property Report.

The escalating price of waterfront property at Sylvan Lake has undergone an abrupt reversal, according to Re/Max’s 2011 Recreational Property Report.

The report, which assessed 46 markets across Canada, placed the starting price for a three-bed room winterized property on Sylvan Lake at $800,000.

That’s down dramatically from the $1.2-million figure used in Re/Max’s 2010 report. In 2009 the starting price was calculated at $1,125,000, in 2008 it was $1,250,000 and in 2007 it was $1 million.

However, lots on the popular Central Alberta lake remain among the priciest recreational property in Canada, said the Re/Max report.

Only British Columbia was found to have more expensive land, with North Okanagan-Shuswap coming in at $995,000, South Okanagan at $800,000, Cultus Lake in the Fraser Valley at $800,000 to $1 million, and Tofino at $825,000.

Canmore was the only other Alberta community considered in the report, with the starting price of a two-bedroom condominium in the mountain town listed at $229,000.

The report said oil and gas executives from Calgary and Edmonton were common buyers at Sylvan Lake.

The inventory there is “adequate,” it said, with 20 current listings for recreational properties on the water and 28 for rec properties off the water. In the latter case, prices start at about $249,000.

The report also said that Pine Lake, Gull Lake and Buffalo Lake are gaining popularity among buyers.

Canada-wide, demand for recreational property is up in 78 per cent of the markets considered, but sales activity is up or unchanged in only 41 per cent.

In Western Canada, sales are up or the same in 58 per cent of the markets included in the report.

Re/Max said many of those selling recreational property in Canada are Americans.

Often, they bought a number of years ago when exchange rates were slanted heavily in their favour.